10,000 Per Cent Multibagger Returns: Railway Penny Stock Under Rs 50 Hit Upper Circuit; Trades at High ROE
The stock gave multibagger returns of 325 per cent in 2 years and a whopping 10,000 per cent in 5 years.
Today, the shares of MIC Electronics Ltd hit a 5 per cent upper circuit to Rs 55.46 per share from its previous closing of Rs 52.82 per share. The stock’s 52-week high is Rs 114.74 per share while its 52-week low is Rs 36.75 per share.
MIC Electronics Ltd., founded in 1988, is a leading manufacturer of LED displays (indoor, outdoor, mobile), lighting solutions (indoor, outdoor, solar), telecom equipment, railway and software. They also produce medical equipment like oxygen concentrators and batteries. Headquartered in India, MIC exports its products globally and has a presence in the USA, Australia, the UK and other countries.
MIC Electronics Limited has secured approval from the Rail Coach Factory, Kapurthala, for the supply and installation of an Emergency Lighting System (ELS) for LHB AC & NAC Coaches, a significant development under SEBI regulations. This follows the company's recent strategic moves, including a Rs 51 crore investment in its newly formed Dubai subsidiary, SOA Electronics Trading LLC, aimed at expanding its electrical and electronic spare parts trading operations. Furthermore, MIC Electronics has also been awarded a contract for CIB services at Abhaipur station and has incorporated MICK Digital India Limited, demonstrating a diversification of its business portfolio.
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According to Quarterly Results (Q3FY25), the company reported net sales of Rs 11.75 crore and a net profit of Rs 2.17 crore while in its nine-month results (9MFY25), the company reported net sales of Rs 33.66 crore and a net profit of Rs 6.25 crore. Looking at the consolidated annual results, the company reported net sales of Rs 22.91 crore and a net profit of Rs 0.26 crore in FY24.
MIC Electronics has a market cap of over Rs 1,337 crore and has delivered good profit growth of 32.1 per cent CAGR over the last 5 years with an ROE of 60 per cent. Minerva Ventures Fund holds a 2.03 per cent stake in the company as of December 2024. The stock gave multibagger returns of 325 per cent in 2 years and a whopping 10,000 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.